7 Reasons Why Non-For-Profits Should Be Your Next Business Choice

Various social and economic benefits are the main reasons why non-for-profits should be your next business choice. However, you also shouldn’t discard the fact that starting this type of organization is much easier. In addition, you might be able to avoid many issues that stump startups, like lack of qualified staff.

Social & Economic Reasons Why Non-For-Profits Are a Great Business Choice

1. Tax Exemptions

Non-for-profit organizations are considered public charities, which exempts them from paying some taxes, including income tax. This efficiently removes one of the greatest costs for a starting business and allows it to use finances more efficiently.

2. Limited Liability

The assets of non-for-profits are off limits to courts and creditors. This benefit also spreads to the people working for the organization, as they hold no personal liability for its debts. Note that there are exemptions to this rule. However, they will become a concern only if your charity serves as a front to cover some illegal activity.

3. Ease of Starting

Setting up a non-for-profit can be much easier than any other type of business because you’ll be able to get funding fast. You also won’t have a hard time finding employees as many people today want to help charities.

4. Noble Purpose

Non-for-profits help change the world for the better. They save lives and contribute to restoring the health of the planet. This fills every employee with a sense of accomplishment and motivates them to do their best.

5. Support from the Society

Many regard scrutiny from the society as a disadvantage of this business. However, it’s one of the reasons why non-for-profits are great, as more people will support than critique your organization. As a charity, you’ll get not only positive attitude from the people but also aid from the state. This includes both donations and offers to help your business, like a free advertisement, reduced rent on venues, etc.

6. Grant Eligibility

For a startup, getting a grant or any other type of financial aid is a huge challenge. Non-for-profits, on the other hand, are eligible for all public and private grants. Some government agencies even limit their offers to charities only.

7. Unlimited Growth Opportunities

The non-profit itself and every employee within it have no limits to their growth. In a regular corporation, every task is strictly divided among employees. In a charity, the structure is less formal so that everyone can contribute to a variety of tasks. Employees also can bring in their ideas, which might give the entire organization new development opportunities.

How to Start Your Own Non-For-Profit Business

To set up your own non-profit, you need to decide what you want to specialize in and seek funding. You can get money quickly through short-term loans. They would be easy to pay off as a charity can raise funds very fast in today’s world. A clever Facebook campaign can provide you enough money to cover the debts and allow your organization start helping others.

Another idea where you can find funding is looking for an investor. For example, non-profits Angel Investors can get your business running faster than a bank, which has to follow formal procedures.

Once you have the money, start promoting your charity via social media and other. Start spreading the word of your existence right away as this will not only draw in more funds but also the people. This will help you find prospective employees and build a team of professionals, who support your goals.

Non-for-profits should be very active in their field and their community in order to establish a good reputation. This is a business, which runs on trust, so building a good name for yourself should be your main goal. Consider this when choosing your employees as all of your will have to maintain a positive public image.

About author

Melissa has graduated from the faculty of Journalism of Iowa State University. She is an entrepreneur and independent journalist. Her sphere of interests includes startups, information technologies and how these ones may be implemented in the sphere of education.

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